Transfer of Cheque

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 14 February 2020

How is it possible...?
Here the cheque write the name A then B can't use the cheque...!

prasad Nilugal

GST Practitioner & Accounts

15093 Points Posted on 14 February 2020

Cheque Issued in the name of company ,Can not be transferred directly to creditors .

Ajit Choudhary

32 Points Posted on 14 February 2020

If not mentioned company's name then

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 14 February 2020

No...
It's not correct / good...

MOHAN VERMA

ACCOUNT MANAGER

47 Points Posted on 14 February 2020

Yes you can through sign on the back side and the name of person to whom you want to transfer

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 14 February 2020

Then How it will be accountable in books...??

If it's account payee and had to be so under 40A(3).

You can ask directly your debtor to issue cheque in your creditor party name. If he agrees then it's ok.

By doing, what purpose you seek to obtain ?
Keep transactions straight and identifiable instead of complicating.

Spurto Consultancy Services

Consultant

1891 Points Posted on 15 February 2020

If the Cheque is Account payee then you cannot transfer the cheque directly to your creditor.

Further, if you saying the name of the Company is not mentioned- its an incomplete cheque(only name not mentioned) then you can name it with your creditor after taking consent of your debtor.

In the account just make a journal entry and adjust your creditor liab with debtor balance.